Radian Guaranty, the mortgage insurance business of Radian Group, announced that it will no longer insure "stated income" and "stated asset" loans. This is due to the poor performance of these loans, Radian said. This change will take effect on April 30, 2008 for all new mortgage insurance applications.
The company has also announced previous revisions to its underwriting guidelines and pricing policies that will go into effect on March 31, 2008. These include adjustments to loan-to-value, documentation and FICO requirements.